Since last fall, a fog of uncertainty has blanketed New York’s art world as galleries, artists, and collectors have tried to make sense of the current economic recession. While the economy was still in free-fall, New York Magazine critic Jerry Saltz predicted a dire economic future: “If the art economy is as bad as it looks—if worse comes to worst—40 to 50 New York galleries will close.”

And some juicy stuff:

Ground zero for the gallery rumor mill is a blog called How’s My Dealing. The site is the art world’s secret guilty pleasure, although not one without its share of misinformation and controversy…

Rumors aside, nine city art galleries have or will close since the economic crisis began: 31GRAND, Cohan and Leslie, Guild & Greyshkul, Mehr Gallery, Fotosphere, Plane Space, Rivington Arms, Roebling Hall, and werkstatte. Many others have downsized or are faced with uncertain futures.

Read the whole thing here (registration on the NYFA site is required).

Hrag,
Kudos on this article, what a scoop. I think there will be more fallout after the Armory Show Fair Week. Dealers never openly discuss their economic plight until it’s history. The art business has never marched in lockstep with normal economic trends, so there may not be a 10% closure rate but, we won’t know for another two years.